The Number Most Homebuyers Don't Know About
You've saved for a down payment. Your credit score looks solid. You're ready to buy a house.
Then you apply for a mortgage—and get denied.
What happened? In almost half of all cases, the answer is three letters: DTI.
According to the National Association of Realtors, 48% of prospective homebuyers who get denied for a mortgage are turned down because of their debt-to-income ratio. Not their credit score. Not their down payment. Their DTI.
And here's the frustrating part: most people don't even know what DTI is until a lender tells them theirs is too high.
What Is DTI, Exactly?
Your debt-to-income ratio is a comparison of how much you owe each month versus how much you earn. Lenders use it to determine whether you can actually afford a mortgage payment on top of everything else you're already paying.
Think of it from the lender's perspective. They're about to loan you hundreds of thousands of dollars. They want to know: after this person makes their mortgage payment and all their other debt payments, do they have enough money left to actually live?
If too much of your income is already going to debt, the answer is no—and so is your mortgage application.
The Good News
Unlike your credit score, which takes months or years to improve, you can move your DTI in a matter of weeks if you know what you're doing.
DTI is just math. And once you understand the math, you can control the outcome.
What You'll Learn in This Course
By the end of this course, you'll know:
- Exactly how DTI is calculated
- What counts toward your DTI (and what doesn't)
- The specific limits for different loan types
- How to calculate your own DTI before applying
- Seven proven strategies to lower your DTI
- What to do if your DTI is on the edge
Don't let DTI be the reason you don't get the keys.
Key Takeaway
Debt-to-income ratio is the #1 reason mortgage applications get denied—48% of denials are due to DTI. Understanding and controlling this number is essential for mortgage readiness, and unlike credit scores, DTI can be improved quickly.